Investment Rating - The report maintains a "Positive" investment rating for the sodium-ion battery industry [9] Core Insights - The sodium-ion battery technology has regained attention due to fluctuations in lithium prices and strategic moves by leading manufacturers, transitioning from a "technology reserve" to "scale commercialization" [5][17] - The sodium-ion battery benefits from low cost, abundant resources, and compatibility with industrialization factors, making it a promising new technology route [6][39] - The industry consensus has shifted from viewing sodium-ion batteries as substitutes for lithium-ion batteries to recognizing them as important complements [8] Summary by Sections Cost Drivers - Current cost estimates for sodium-ion battery materials are as follows: copper-iron-manganese system at 296.6 CNY/kWh, nickel-iron-manganese system at 398.1 CNY/kWh, and sodium iron phosphate system at 379.3 CNY/kWh, which are near the cost balance point of lithium iron phosphate [6][40] - The economic viability of sodium-ion batteries is enhanced by not using high-cost metals like lithium carbonate and copper, with estimated economic balance points depending on copper prices [41] Scene Expansion - Sodium-ion batteries are entering a phase of deep industrialization, expanding from niche applications to widespread market penetration, particularly in low-temperature and high-power scenarios [7][45] - They are positioned as cost-effective alternatives in applications where energy density is less critical, such as battery swapping and low-speed electric vehicles [7][45] - The technology is expected to play a significant role in the electric two-wheeler market and energy storage systems due to its cost advantages and resource endowment [7][45] Investment Recommendations - The report suggests focusing on the material segments of the sodium-ion battery supply chain, such as sodium-ion cathodes and aluminum foils, which are expected to see incremental expansion [8]

1. Report Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - The construction of the "modern central bank" system depends on the improvement of the "dual - pillar" of monetary policy and macro - prudential management policy. This report focuses on the formation and evolution of China's policy interest rate system and systematically reviews the development and application of various monetary policy tools, aiming to establish a theoretical and practical framework for subsequent analysis of the interest rate transmission mechanism [2][7][21]. - The current policy interest rate of the central bank has shifted to the short - end, with the 7 - day reverse repurchase rate becoming the main policy interest rate, and the Medium - term Lending Facility (MLF) rate fading out of the policy interest rate sequence [8][24][28]. - The central bank's monetary policy toolbox is diverse, and the innovation of monetary policy has obvious stage divisions. Since 2024, there have been changes in the central bank's thinking on quantity - price operations and expected management of monetary policy [9]. - Since the end of 2024, the monetary policy has changed from "prudent" to "moderately loose", and in 2026, it continues to be set as such, with more emphasis on "flexibility and efficiency" [10][135]. 3. Summary According to Relevant Catalogs Introduction - "Building a modern central bank system" is an important part of "establishing a modern fiscal and financial system". Since its proposal, the central bank has carried out reforms in multiple directions, including the short - end concentration of policy interest rates, the introduction of new open - market operation tools, and the launch of targeted structural monetary policy tools. The regulatory authorities have also given clear expectations for future reform directions [17][19]. - The report series is launched to comprehensively sort out and interpret policy reforms, and the first report focuses on the review and direction deduction of monetary policy tools and policy interest rates [19][21]. Interest Rate System Framework: Starting from Policy Interest Rates Policy Interest Rate Latest Changes: Focusing on the Short - End - China's current interest rate system is divided into three levels: the central bank's policy interest rate (currently the 7 - day reverse repurchase rate), market benchmark interest rates (including the deposit - type financial institution pledged repurchase rate, treasury bond yield, and loan prime rate), and diverse market interest rates in the money, bond, and deposit - loan markets [8][24]. - In 2024, during the process of deepening interest rate marketization reform, the central bank clearly defined the 7 - day reverse repurchase rate as the main policy interest rate. The MLF rate has faded out of the policy interest rate sequence, with adjustments in its operation time and bidding method [28][29]. Policy Interest Rate Review: Retrospect of the Development of 7 - Day Reverse Repurchase and MLF - Policy interest rates have evolved from multiple co - existing rates to the 7 - day reverse repurchase rate. Before 2015, there were many types of policy interest rates. Around 2020, the central bank established a framework with the open - market operation rate as the short - term policy interest rate and the MLF rate as the medium - term policy interest rate. From 2024 - 2025, the 7 - day reverse repurchase rate became the only policy interest rate [37][39][40]. - The 7 - day reverse repurchase has evolved from sporadic use to the most core policy interest rate. It originated in 1998, with low - frequency use from 1999 - 2007 and a suspension from 2008 - 2011. Since 2016, it has become a regular operation, and since 2020, the 7 - day term has been the main one, with its policy attribute continuously enhanced [42][46][47]. - The MLF was created in September 2014 to hedge the decline in foreign exchange reserves. Its term has been unified to 1 - year, and its scale has increased significantly. Around 2020, its operation rate independently assumed the function of the medium - term policy interest rate. Currently, it has withdrawn from the policy interest rate position and returned to its function of liquidity injection [59][63][68]. Monetary Policy Toolbox Inventory Deposit Reserves: A Long - Term Liquidity Adjustment Tool for the Banking System - The system framework of deposit reserves has been continuously improved, with the scope of the reserve base expanding and the deposit reserve ratio system undergoing multiple reforms, including the implementation of a differential deposit reserve ratio system, targeted reserve requirement cuts, and the establishment of a "three - tier and two - preference" framework, which is now simplified to a "three - tier" framework [79][80][85]. - The central bank has adjusted the deposit reserve ratio in multiple stages according to the macro - economic situation, and the reserve assessment method has changed from the point - in - time method to the average method. The central bank has also adjusted the reserve interest rate multiple times [90][94][95]. Buy - out Reverse Repurchase: Created in October 2024 to Provide Medium - and Short - Term Liquidity - The buy - out reverse repurchase is different from the traditional pledged reverse repurchase in terms of bond ownership and bidding method. Its operation has become more transparent, with a monthly rhythm of providing different - term liquidity support at different times. It has become an important channel for the central bank to inject liquidity [98][100][101]. Treasury Bond Trading: Launched in 2024 to Release Medium - and Long - Term Liquidity - Treasury bond trading was launched in August 2024, suspended in January 2025, and restarted in October 2025. It can supplement the medium - and long - term liquidity of the banking system, and the central bank's trading of treasury bonds has an impact on its balance sheet [107][110]. Other Monetary Policy Tools Overview - The central bank's monetary policy toolbox is rich, including open - market operation tools (such as central bank bills, central bank bill swaps, etc.), central bank lending tools (such as rediscount and re - loans), and innovative tools (such as standing lending facilities, pledged supplementary loans, etc.). Some tools have faded out after fulfilling their historical missions [115][117]. Current Monetary Policy Orientation: "Moderately Loose" and "Flexible and Efficient" - Since the end of 2024, the monetary policy has changed from "prudent" to "moderately loose", and in 2026, it continues to emphasize "flexibility and efficiency". The "moderately loose" policy is necessary for economic recovery and coordination with fiscal policy [10][135]. - "Flexible and efficient" implies precise implementation of policies, especially considering the limited space for reserve requirement cuts and interest rate cuts. The Federal Reserve's three interest rate cuts in 2025 have opened up policy space for domestic interest rate cuts. Although the domestic deposit reserve ratio has limited downward space, there is still room for reform, and the use of diversified liquidity injection tools can replace reserve requirement cuts to some extent [137][139][141].

Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Viewpoints - The acceleration of nuclear power construction is a key industry driver for growth, with the company's modular business share increasing, which is expected to enhance profitability. The expansion of the convertible bond project will bring new development momentum [2][6] Summary by Relevant Sections Industry Overview - The nuclear power construction in China is accelerating, with a total of 28 new nuclear power projects approved over the past seven years, totaling 56 units. The number of approved and under-construction nuclear power units has reached 54, maintaining China's position as the world leader in nuclear power [7] Company Analysis - The company has a competitive advantage in modular manufacturing, which allows for the prefabrication and pre-assembly of large, complex devices, leading to cost and quality control benefits. Recent contracts, such as the 226 million yuan project for the Ningde Phase II modules, highlight this advantage [12] - The company's shareholder, China General Nuclear Power Group, may facilitate positive changes, such as an increase in modularization and progress in nuclear qualifications [12] - The company's nuclear gas separation devices contribute to its valuation and thematic flexibility, with significant involvement in fusion energy projects [12] Financial Performance - In the first three quarters, the company reported a revenue of 1.983 billion yuan, a year-on-year decrease of 23.44%, and a net profit of 178 million yuan, down 11.15%. However, the decline in profit was less than that of revenue, attributed to improved gross margins and reduced credit impairment losses [12] - The company is expanding its modular production capacity significantly, with the new convertible bond project covering an area of 487,800 square meters, which is 3.17 times the size of its main production base [12]

Investment Rating - The industry investment rating is "Positive" and maintained [10] Core Insights - The expectation for the real estate market in China is stabilizing, with a focus on improving and managing market expectations [6][21] - The two leading fiberglass companies, China Jushi and China National Materials, have implemented stock incentive plans, reflecting their operational confidence [7] - The cement shipment has experienced a seasonal decline, while glass inventory has decreased month-on-month [8] Summary by Sections Real Estate Market Expectations - A commentary published in "Qiushi" emphasizes the financial attributes of real estate and its importance in the national economy and household wealth, suggesting that policies should be decisive to stabilize market expectations [6][21] Stock Incentives of Leading Companies - China Jushi announced a restricted stock incentive plan for up to 34.53 million shares, accounting for 0.86% of its total shares, with a target compound annual growth rate (CAGR) for net profit from 2026 to 2028 set at no less than 38.5%, 27.0%, and 22.0% respectively [7] - China National Materials proposed a stock option incentive plan for 15.4 million shares, representing 0.92% of its total shares, with a target CAGR for net profit from 2026 to 2028 set at no less than 107.0%, 73.0%, and 62.5% respectively [7] Market Fundamentals - Cement: The average shipment rate for major domestic cement companies was approximately 40.1% at the end of December, down 1.1 percentage points month-on-month and 1.4 percentage points year-on-year [8] - Glass: The production capacity of float glass decreased, with 212 out of 265 production lines operational, and daily melting capacity reduced to 151,405 tons, a decrease of 2,700 tons from the previous week [8] Outlook for 2026 - Focus on three main lines: - **Stock Chain**: Emphasizing demand optimization and supply clearance, with renovation demand expected to rise from 50% to nearly 70% by 2030 [9] - **Africa Chain**: Highlighting undervalued growth in Africa, with recommendations for companies like Keda Manufacturing and Huaxin Cement [9] - **AI Chain**: Anticipating upgrades in special electronic fabrics, with a focus on companies like China National Materials [9]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Insights - In December 2025, the company sold 399,000 vehicles, a year-on-year decrease of 17.3% and a month-on-month decrease of 13.3%. However, the total sales for 2025 reached 4.508 million vehicles, representing a year-on-year increase of 12.3% [2][11] - Despite industry pressures, the company's self-owned brands achieved significant year-on-year growth, with December sales for SAIC Passenger Cars reaching 97,000 units, up 25.2% year-on-year. The sales for the entire year of 2025 for self-owned brands were 887,000 units, an increase of 25.4% [11] - The company launched several new models in December, including the Buick flagship MPV and the new MG4 semi-solid battery model, which are expected to enhance sales performance [11] Summary by Sections Overall Performance - December total sales were 399,000 vehicles, down 17.3% year-on-year and down 13.3% month-on-month. The total sales for 2025 were 4.508 million vehicles, up 12.3% year-on-year. The company's reforms have led to a stabilization and recovery in sales [11] Self-owned Brands - The self-owned brands performed well under industry pressure, with December sales of 97,000 units, up 25.2% year-on-year. The total sales for 2025 reached 887,000 units, an increase of 25.4% [11] New Energy and Overseas Sales - December sales for new energy vehicles were 144,000 units, down 6.6% year-on-year and down 31.3% month-on-month. The total sales for 2025 were 1.643 million units, up 33.1% year-on-year. Overseas sales in December were 101,000 units, up 0.2% year-on-year [11] Joint Ventures - December sales for SAIC Volkswagen were 88,000 units, down 32.4% year-on-year, while SAIC General's sales were 48,000 units, down 25.4% year-on-year. The total sales for 2025 for SAIC Volkswagen were 1.024 million units, down 10.8% [11] Internal Reforms and Future Outlook - The company is advancing internal reforms and enhancing cooperation with Huawei to accelerate its smart transformation. The expected net profits for 2025 and 2026 are projected to be 10.5 billion and 12.2 billion yuan, respectively, with corresponding P/E ratios of 16.7X and 14.4X [11]

Investment Rating - The investment rating for the steel industry is Neutral, maintained [9] Core Insights - The report highlights that the expansion of low-cost capacities, such as Simandou and the four major mines, is expected to drive long-term declines in iron ore prices. A significant drop in prices is anticipated in March and April, with current iron ore inventories at historical highs, suggesting a potentially larger decline [2][6] - The steel industry is experiencing a reduction in supply pressure due to self-initiated production cuts, leading to a slight improvement in profitability despite weak demand in the construction steel sector. Total steel demand is supported by resilient plate demand, with a year-on-year decline of 3.57% and a month-on-month decline of 0.56% in apparent consumption [4][5] - The report emphasizes the importance of supply-side policies aimed at reducing low-end exports and eliminating outdated capacities, with a focus on environmental and energy efficiency evaluations expected to be completed by the end of 2025 [2][6] Summary by Sections Cost Analysis - The black industrial chain's profits are largely captured by iron ore, with total profits estimated at 4,127 billion for iron ore, 337 billion for coking coal, and 1,264 billion for steel, representing 72%, 6%, and 22% of total profits respectively. The majority of iron ore is imported, leading to a significant outflow of profits overseas [5] - The Simandou project is expected to begin production by the end of 2025, with anticipated sales of 30 million tons from the northern mine and 5 to 10 million tons from the southern mine in 2026, contributing to a projected 4.3% increase in global iron ore supply [5] Supply Analysis - The report indicates that the steel industry is focused on reducing excess capacity, with policies aimed at "grading management and eliminating the weak" expected to be implemented in 2026. Non-compliant enterprises may face significant production cuts, highlighting the importance of regulatory compliance [6] - The report notes that the overall steel inventory has decreased by 2.70% week-on-week, while year-on-year it has increased by 12.34%, indicating a gradual reduction in inventory levels [4]

Investment Rating - The industry investment rating is "Positive" and is maintained [8] Core Insights - The domestic AI industry is experiencing positive developments, with significant events such as Meta's acquisition of Manus and the IPOs of Zhiyu and MiniMax in Hong Kong. These changes indicate that 2026 may be a pivotal year for the AI industry, transitioning from technological breakthroughs to large-scale implementation [2][4][6] - The current phase of the AI large model market in China has shifted from an early "hundred model battle" to a critical stage of "application heat" and "value verification," suggesting that resources may concentrate on leading firms [6] - The report suggests focusing on domestic large model vendors, major cloud service providers, vertical scenario agent vendors, and the domestic computing power supply chain as potential investment opportunities [2][6] Summary by Sections Event Description - The report highlights that the domestic AI industry has seen a surge of positive news around the New Year holiday, with key developments indicating that 2026 could be a transformative year for the industry [4] Event Commentary - The report discusses the IPOs of Zhiyu and MiniMax, marking a significant step for China's large model industry as it enters a phase of value verification. The funds raised will primarily support AI model development and infrastructure optimization [6] - The acquisition of Manus by Meta is noted as a strategic move to enhance Meta's capabilities in agentic AI, potentially leading to scalable and practical AI applications [10]

Investment Rating - The investment rating for the company is "Buy" and it is maintained [6]. Core Insights - The company delivered a total of 37,508 vehicles in December 2025, representing a year-on-year increase of 2.2% and a month-on-month increase of 2.1% [2][4]. - For the entire year of 2025, the company achieved cumulative deliveries of 429,000 vehicles, marking a significant year-on-year growth of 125.9% [2][4]. - The launch of the new X9 model has been particularly strong, with 5,424 units delivered in December, achieving a month-on-month increase of 68% and a year-on-year increase of 289% [6]. - The company is expected to continue its growth trajectory with new models like the P7+ and G7 set to be released, enhancing its sales cycle [6]. - The overseas market has also shown promising growth, with 45,000 vehicles delivered internationally in 2025, reflecting a year-on-year increase of 96% [6]. - The company anticipates Q4 2025 deliveries to be between 125,000 and 132,000 units, which would represent a year-on-year growth of 36.6% to 44.3% [6]. Summary by Relevant Sections Sales Performance - December 2025 deliveries totaled 37,508 vehicles, with a year-on-year growth of 2.2% and a month-on-month growth of 2.1% [2][4]. - Cumulative deliveries for 2025 reached 429,000 vehicles, up 125.9% year-on-year [2][4]. New Product Launches - The X9 model has seen strong performance, with December deliveries reaching 5,424 units, marking a record for the model [6]. - Upcoming releases of the P7+ and G7 models are expected to further boost sales [6]. International Expansion - The company delivered 45,000 vehicles in international markets in 2025, a 96% increase year-on-year [6]. - The company has established a presence in 60 countries and regions globally, with local production in Malaysia starting in December 2025 [6]. Future Outlook - The company is positioned for significant revenue growth, with projected revenues of approximately 75.1 billion and 112.1 billion for 2025 and 2026, respectively [6]. - The anticipated price-to-sales ratios for 2025 and 2026 are 1.8 and 1.2, respectively, supporting the "Buy" rating [6].

Investment Rating - The report maintains a "Positive" investment rating for the healthcare sector [10]. Core Insights - Elon Musk announced on December 31, 2025, that his brain-computer interface company Neuralink will begin "mass production" of brain-computer interface devices in 2026, transitioning to a "more streamlined and almost fully automated surgical process" [2][6]. - The brain-computer interface market has significant growth potential, with invasive products expected to become a key focus area. Internationally, companies like Neuralink are leading in technology, while several domestic companies in China have made breakthroughs in R&D, supported by favorable policies [2]. - The global brain-computer interface market is projected to reach USD 2.62 billion by 2024, with a compound annual growth rate (CAGR) of 17.4% from 2025 to 2034. In China, the market is expected to exceed RMB 6 billion by 2028, with a CAGR of approximately 17.7% from 2024 to 2028 [14]. - Neuralink employs a minimally invasive implantation approach, with 12 individuals having implanted devices as of September 2025, totaling over 20,000 hours of usage [14]. - Several domestic companies have achieved breakthroughs in brain-computer interface technology, with notable advancements in clinical trials and regulatory approvals [14]. - The industry is encouraged by supportive policies, with the National Healthcare Security Administration in China having established pricing for brain-computer interface services [14]. - Experimental animals, such as mice and monkeys, play a crucial role in brain-computer interface research, with mice being used for initial testing and monkeys for more advanced validation due to their closer anatomical and functional similarities to humans [14]. - Recommended companies to watch include Meihao Medical for brain-computer interfaces and Zhaoyan New Drug for experimental animals [14].

Investment Rating - The industry investment rating is "Positive" and is maintained [7] Core Insights - The computer sector has shown a continuous upward trend, with an overall increase of 1.23% last week, ranking 4th among primary industries in the Yangtze River region. The sector's trading volume accounted for 6.72% of the total market, with a year-to-date increase of 20.33% [2][4][14] - The report highlights significant developments in the AI industry, indicating that 2026 may be a pivotal year for the transition from technological breakthroughs to large-scale implementation. Key areas of focus include domestic large model manufacturers, major cloud service providers, vertical scenario agent manufacturers, and the domestic computing power supply chain [6][50][61] Summary by Sections Computer Sector Performance - The computer sector's performance last week was characterized by a 1.23% increase, with the Shanghai Composite Index closing at 3968.84 points, reflecting a 0.13% rise for the week and an 18.41% increase for the year [4][14] - The sector's trading volume represented 6.72% of the total market, with a year-to-date increase of 20.33%, ranking 17th among primary industries [2][14] Key Developments - The report emphasizes the positive developments in the AI industry, including Meta's acquisition of Manus and the upcoming IPOs of major AI companies like Zhiyuan and MiniMax, indicating a shift towards large-scale application and value verification in the AI sector [50][51][57] - The digital RMB has transitioned to a "digital deposit currency" era with the launch of the digital RMB App 2.0, which now offers interest on wallet balances, enhancing its role as a financial product [29][30][37] Recommendations - The report suggests focusing on the following areas for investment opportunities: 1) Domestic large model manufacturers 2) Major cloud service providers 3) Vertical scenario agent manufacturers 4) The domestic computing power supply chain [6][61]